Real-World Asset Tokenization (RWA):
Fundamentals:
- RWA involves representing physical assets through digital tokens on blockchain platforms.
- Examples include real estate, art, and commodities.
- Blockchain ensures decentralization, transparency, and security for digital token administration.
Advantages:- Increased liquidity through fractional ownership and easy trading on decentralized platforms.
- Transparency through secure blockchain records.
- Smart contracts reduce manual processes and intermediaries, enhancing processing speed and reducing operational costs.
Challenges:
- Regulatory uncertainty requires compliance with evolving financial regulations.
- Robust security measures are essential to protect against cyber threats.
Click here to read more about Real World Asset (RAW) Tokenization.